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Eurobank has raised €700 million through a new bond issue after attracting far stronger investor interest than expected, another sign that international markets remain confident in the bank and the wider Greek banking sector.
The bank announced Tuesday that demand for the bonds reached nearly €2.7 billion, almost four times the amount on offer, allowing Eurobank to improve the final pricing of the deal and lower its borrowing costs.
The fixed-rate senior preferred bonds will mature in 2032 and carry an annual interest rate of 3.875%.
Initially, the bank had indicated a higher risk premium for investors, but strong demand allowed Eurobank to tighten the spread significantly before final pricing was completed.
More than 90 investors took part in the transaction, with foreign investors accounting for roughly 91% of total participation.
The biggest interest came from the United Kingdom and Ireland, followed by investors from Germany, Austria, Switzerland, France and the Benelux countries.
Large asset management firms made up the biggest group of buyers, while banks, insurance funds, pension funds, and hedge funds also participated.
The bonds are expected to be officially settled on May 25 and will be listed on the Luxembourg Stock Exchange.
Eurobank said the funds raised will help strengthen the group’s financial position and support regulatory requirements linked to capital and funding reserves, while also being used for general business purposes.
The transaction was coordinated by major international financial institutions including BNP Paribas, Deutsche Bank, Goldman Sachs, Intesa Sanpaolo, Jefferies and Nomura.
